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Former Member
Aug 06, 2012 at 08:00 AM

Negative amortization


Dear SAP expert,

We have a case that we would like to amortize the front-end fee over the life of the deal.

Our product is interest rate instrument. And we enter the amount of front-end fee as other flow.

The reason is because this flow will come after the nominal. That's why we don't tick permit "premium/discount".

However, even we try to set effect of update type as 1011, 1014, 1015 for investment transaction, the amortization is always negative (V303).

We enter the front-end fee as positive since it's an investment (loan given).

Posting TBB1 -> Dr Bank clearing Cr Unamortized (B/S)

Posting TPM1 -> Dr Income (P/L) Cr Unamortized

Since amortization is calculated as negative, then posting of TPM1 will be as above.

How can we achieve to get positive amortization?

Please help suggest.